Kang Hwee Gee J:

[1] The plaintiff's claim against the 1st and 2nd defendants is respectively for the enforcement of a corporate and personal guarantee for a loan granted by the plaintiff to another company ASM Development Sdn Bhd.

[2] The guarantee executed by the 1st defendant is set out in a "Corporate Guarantee" dated 8 July 1997 signed on behalf of the 1st defendant by two directors of the 1st defendant, Dato' Khairuddin Abdul Rahman and David Rashid bin Ghazalli.

[3] The guarantee executed by the 2nd defendant is set out in a "Personal Guarantee" dated 8 July 1997 signed by the 2nd defendant in his personal capacity.

[4] The plaintiff is a licenced insurance company governed and regulated by Insurance Act 1996. Section 50(1)-(4) of the Act provides as follows:

50. Security for credit facility.

(1) No licensed insurer or licensed insurance broker, except in such special circumstances, and in such amounts, as the Bank may approve, shall give to a person any credit facility unless the credit facility is fully guaranteed or secured against property of a value which is not less than such proportion of the credit facility as the Bank may prescribe.

Penalty: Imprisonment fo